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KPMG tips insurers on youth niche

young

Firms must adopt change in response to dealing with a young and dynamic customer base. FILE PHOTO | NMG

Insurers have been advised to simplify products in an effort to woo young people.

Laura Hay, national insurance lead partner at KPMG in the US, says the insurance industry is likely to shift towards a much more simplified, on-demand model that reflects the way customers view insurance.

“Millennials largely want the same thing most other segments want — simplified products they can research and purchase online,” she says in a report compiling global CEO views by KPMG.

“But as an industry, we have not been very good at making our products easy to understand and buy.”

In recent years, insurance penetration and accessibility have been improving steadily in Kenya. However penetration remains at less than five per cent.

A KPMG report says CEOs of East African firms must adopt change in response to dealing with a young and dynamic customer base and a rapidly expanding middle class.